Release Date: January 13, 2005

Participants in Monmouth College's Volunteer Income Tax Assistance Program in 2005 will include, in front, from left, Andrea Geren and Catherine Dwyer. In the second row are, from left, Jeri VanDeVoorde, Lindsey Hampton and Matt Clair. In the back row are, from left, Scott Taylor, Ty Gramkow, Josh Ragar, Steve Coutts and Nik Click. Not pictured are Jaclyn Angelotti, Naomi Aseti, Anthony Beaird, Andrew Elliott, Matt Miller and Nicole Serra.

MONMOUTH, Ill. — For the sixth consecutive year, Monmouth College is offering computerized tax preparation and e-filing at no cost to the taxpayer. This service is provided in cooperation with the Internal Revenue Service’s (IRS) Volunteer Income Tax Assistance (VITA) Program.

Professor Judy Peterson, who coordinates the program, stated that it has a two-fold purpose: service and education for the community and citizenship and education for the students. The service is aimed at low- to middle-income taxpayers who cannot afford professional assistance.

“All ages of taxpayers are served, from students through retirees,” said Peterson. “Everyone who comes to the site is strongly encouraged to e-file. Taxpayers can expect quicker response to their filings, and the IRS can reduce its processing costs.”

The 16 students enrolled in the program will be completing IRS certification requirements in January. They have all completed the federal tax course at the college and attended workshops to orient them to the commercial software and internal control process used.

During the fall, Peterson attended three workshops in Springfield to ready her program for implementation.

“There is not a great deal of change for the average citizen – mostly increases in standard deductions, exemptions, and tax brackets to account for the effects of inflation,” she said. “However, one new aspect this year is the ability of the taxpayer who itemizes on the federal return to choose between taking a deduction for general sales tax or state taxes paid in 2004. Taxpayers can use IRS estimates based on income levels, or documented actual sales taxes paid. We are used to seeing a lot of taxpayers at our site eligible for the EITC (Earned Income Tax Credit), so we look carefully at a tax return for which the software does not generate this credit for the particular taxpayer.”

Peterson said that her students are eager to get started and put their skills and knowledge to work.

“The students are always nervous doing their first return (because it’s live!), but once they feel the joy of processing that first return, the nervousness goes down and they can’t wait to tackle the next one.”

She added, “Each year we survey our participants. Last year, 100 percent were satisfied with the service and indicated they would use the service again and recommend it to a friend. As noted in our survey, most information about our program comes through word of mouth. We are growing leaps and bounds, as evidenced by a 55 percent increase in returns prepared last year over the previous year.”

Tax preparation will be on a first-come, first-served basis, with an enhanced schedule over last year for the busy first two weeks of the season. The schedule, which follows, may also be accessed from the Monmouth College Web site at www.monm.edu/vita-schedule.pdf

For the first two weeks, VITA will be available on three weeknights on campus – Jan. 31 and Feb. 2, 3, 7, 9 and 10 from 4-7 p.m. in Room 308 of McMichael Academic Hall (one building east of the college’s main building, Wallace Hall. Beginning the third week of February, the Thursday session will be dropped, and VITA will be available each Monday and Wednesday evening from 4-7 p.m.

Tax assistance will also be available from the same group of MC students each Saturday afternoon at the Warren County Library from 1-4 p.m., starting Feb. 5.

Peterson said the final day of the VITA program will be April 13. She noted the program will be unavailable during the college’s spring and Easter breaks, eliminating the sessions on March 5, 7, 9, 12, 26 and 28.

In order to receive income tax assistance, individuals should bring the following to a VITA session:

Social security cards for each person listed on the return (includes taxpayer, spouse, and all dependents). THIS IS REQUIRED! The only alternative would be a letter from the Social Security Administration indicating the number; or if you e-filed with VITA last year, your last year’s return containing form 8453 (signature document) and no problems with the Social Security numbers.

All documentation of income, such as W-2s and 1099s.

Last year’s returns. This is necessary if the taxpayer itemized last year and now has a state refund to be added back to income.

Voided check, if the taxpayer wishes direct deposit of the refund. If the direct deposit is to a savings account, the taxpayer must supply a document that lists the account number, and the account must be in the taxpayer’s name.

All information related to deductions such as medical, real estate taxes, mortgage interest, and charitable expenditures if the taxpayer wishes to itemize.

Social Security number or tax identification number of all daycare providers if the dependent care credit is desired.

Tax-free childcare benefits provided through an employer.

Divorced couples: If the noncustodial parent is taking the dependent exemption, need form 8332 signed by the custodial parent or copy of applicable page of divorce agreement (these must be filed with the return, whether e-filed or not).

Information on contributions to Individual Retirement Accounts (IRAs).

For stock transactions: need purchase date and cost basis as well as sale date and sale price (note that VITA will not prepare a complex Schedule D).

Other important issues to consider:

Both spouses must be present if they are going to e-file a joint return.

Are you being claimed as a dependent on someone else’s return?

Who is claiming the Earned Income Tax Credit (EITC) for a child if parents are not filing jointly?

VITA volunteers will not prepare or e-file a return for a small business (Schedules C and F). However, they can do a Schedule C-EZ for nonemployee income; prepare or e-file a return for rental property (Schedule E); prepare or e-file a complex Schedule D (capital gains/losses); prepare or e-file a form 8606 (nondeductible IRAs); and prepare or e-file a Form 8615 (minor’s investment income).

For questions regarding this service, Peterson may be contacted at 309-457-2365.

NEWS AT MC

Located in the lower level of the Admission/College Relations building, the office is responsible for media relations, official college publications, the college Web site and sports information.